Question

Freda's Florist reported the following before-tax income statement items for the year ended December 31, 2021: Operating income $ 269,000 Income on discontinued operations 55,000 All income statement items are subject to a 25% income tax rate. In its 2021 income statement, Freda's separately stated income tax expense and total income tax expense would be:

Answer 1

the separately stated income tax expense and total income tax expense is $67,250 and $81,000 respectively

Step-by-step explanation:

The computation of the separated stated income tax expense and total income tax expense is shown below

Income tax expense is

= $269,000 × 25%

= $67,250

And, the Total income tax expense is

= ($269,000 + $55,000) × 25%

= $81,000

hence, the separately stated income tax expense and total income tax expense is $67,250 and $81,000 respectively